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Stream Wars: The Battle Heats Up - Beyond TV Pro Streaming Cognitive TV ottexec.com/magazine - OTT Executive Summit
ottexec.com/magazine                                Fall 2019

  Stream Wars: The Battle Heats Up
Executive Q&A
     Remi Beaudouin    Steve Oetegenn
                                                 Beyond TV
     ATEME             Verimatrix
     Erik Otto         Anthony Smith-Chaigneau
                                                 Pro Streaming
     Mediaproxy        NAGRA                     Cognitive TV

                                                       Fall 2019
Stream Wars: The Battle Heats Up - Beyond TV Pro Streaming Cognitive TV ottexec.com/magazine - OTT Executive Summit
Stream Wars: The Battle Heats Up - Beyond TV Pro Streaming Cognitive TV ottexec.com/magazine - OTT Executive Summit
Inside this Issue                                                                   Staff
                                                                                    Brian Mahony
                                                                                    CEO, Trender Research

     Case Studies                                                                 Founder & Editor-in-Chief,
                                                                                   OTT Executive Magazine

14    Creating Roku Channels: A Few Experience-Based Tips                         Nichole Janowsky
                                                                                    Publications Manager
      by Alejandro Corpeño                                                      OTT Executive Magazine, Editor

34    Making TV Voice Discovery Child Friendly by Charlie Bonfield                    Kurt Michel
                                                                                    EVP, Trender Research

     Executive Q&A                                                                Donna Bauchiero
10
                                                                                      Business Manager
      ATEME’s Remi Beaudouin, Chief Strategy Officer
20    Verimatrix’s Steve Oetegenn, President & Chief Operating Officer
30    Mediaproxy’s Erik Otto, CEO                                                      Volume
36    NAGRA’s Anthony Smith-Chaigneau, Senior Director Product Marketing          Volume 9, Issue 3
                                                                                      Fall 2019
     Trends & Analysis
12    Pay-TV Services Decline as OTT Services Continue their Rise                    Publisher
      by Elizabeth Parks                                                        Trender Research Inc.
24    Data is Crucial in Today’s Evolving New-Media Environment                 24 Village View Road
      by Jim O’Neill                                                            Westford, MA 01886

                                                                             info@TrenderResearch.com
     Executive Insights
4     Stream Wars (The Battle of the BehemOTTs) by Kurt Michel                       Copyright
8     Will Media’s Quest for Scale Ultimately Lead to Extinction?
      by Virginia Juliano                                                  2019 by Trender Research, Inc.
                                                                           The contents of this magazine may
16    Metadata is the Answer – and the Problem by Janet Greco               not be reproduced in whole or in
22    Beyond TV: The Promise of Delay-Free Live Video by Charlie Kraus     part without the expressed written
26    Get ready for the Cognitive TV Era by Gideon Gilboa                  consent of Trender Research, Inc.

32    How Software Encoder Computing Efficiency Impacts
      Service Quality by Mark Donnigan                                            Subscriptions
38    Leveraging Emerging Technology to Drive the Media Industry           www.OTTexec.com/magazine
      Forward by Hillary Henderson                                          Printed/mailed subscription
                                                                                   (U.S.): $59.95
     Best Practices
6     Balancing Price, Content and Experience Creates Winners
                                                                                   Advertising
      and Losers of Streaming Video by Michael Jones                          bmahony@OTTexec.com
18    Making Existing Codecs Work Better by Guido Meardi
28    5 Tips from the Production Room: How to Live Stream Like a Pro
                                                                                Printed in the USA
      by Carlos Rojas

     News & Events
5     OTT Fest Launch Is a Huge Success by Brian Mahony
                                                                                              Fall 2019          3
Stream Wars: The Battle Heats Up - Beyond TV Pro Streaming Cognitive TV ottexec.com/magazine - OTT Executive Summit
Executive Insights

      Stream Wars (or The Battle of the BehemOTTs)
                                                                     By: Kurt Michel

    A     s I write this, Apple has launched their
          TV+ service in the industry’s latest volley
    to topple Netflix for tomorrow’s viewer. Next
                                                         to be sustained over long periods (a la Game of
                                                         Thrones).
                                                             I am not a content critic, but based on my
                                                                                                                                             Kurt Michel is Execu-
                                                                                                                                             tive VP at Trender Re-
                                                                                                                                             search. He has over
    up is Disney+ on Nov. 12 in the US, to be            early views and critic’s reviews of the Apple                                       30 years’ experience
                                                                                                                                             in telecom, datacom,
    followed by NBCUniversal’s Peacock next              TV+ launch shows, they are somewhat hit and                                         and networking - in
    April, and HBO Max in May.                           miss. But, to use a baseball analogy, the hits                                      development, sales,
        To Netflix’ credit, they have spent a            are no more than doubles, and I think they                                          product management
                                                                                                                                             and marketing roles.
    lot of time on the streaming mountaintop             really needed a home run or two. My wife and                                        His marketing lead-
    building their defenses. Their VOD streaming         I enjoyed an episode of “The Morning Show,”                                         ership experience at
    technology and infrastructure is recognized as       then tried “See.” We did not make it through                                        Akamai, IneoQuest,
                                                                                                                                             and SeaChange gives
    among the industry’s best1, their subscriber-        that first “See” episode. “For All Mankind”           him a unique, multi-faceted perspective on the vola-
    acquired data is the envy of everyone in the         is fun and I think I’m hooked (2 episodes),           tile video industry.
    M&E industry, and they have been investing           but I’ll enjoy that on my own, since the space
    huge amounts of OPM2 ($16B in 2019) on               genre is not my wife’s cup of tea. That means       itself, but the ability to bundle with Hulu and
    original content3. By virtue of their subscriber     I’ll be watching late at night, after she goes to   ESPN+. I believe this will hit Netflix in its
    numbers, they are considered the anchor              bed, so if it’s not engaging, I’ll be snoozing.     Achilles heel. Netflix offers no live or linear
    service of the OTT viewer. But with some of          Summing it up, TV+ is clearly not intended          programming – only on demand – and their
    the biggest companies on the planet targeting        to be the anchor service of the OTT viewer. I       infrastructure is optimized for VOD. Don’t
    them, is it enough? Let’s walk through some of       guess it is aptly named, because it looks like      get me wrong, I believe on-demand viewing,
    the coming competitor’s relative strengths and       an add-on (+) to whatever a viewer does use         as measured by minutes viewed, will only
    weaknesses.                                          as their anchor service. Is it a threat to any      continue to grow. But there will always be
        But first, a moment of silence for arguably      existing services? Maybe the other add-ons          a need for live and linear, and a true OTT
    the first significant casualty of Stream Wars:       like HBO Now or Showtime Anytime, but not           “anchor” service requires that. Since Disney’s
    Playstation VUE, which announced in October          Netflix, Hulu, or even Prime. Without a deeper      infrastructure was built from MLBAM’s
    that they would shut down operations in              library, that is where they will remain.            experience in live sports, they have learned
    January 2020. More on that later.                                                                        how to handle the complexities of live
                                                         Disney                                              video’s demand spikes. I would argue that
    Apple                                                   Next up is Disney+. With the Disney, Pixar,      VOD can easily be handled by a robust live
        Despite Apple’s clear desire to shift to         Star Wars and Marvel libraries (…and National       infrastructure, but the converse is not true. If
    a services business4, they continue to focus         Geographic) behind them, and new content            live/linear really does become a requirement
    these services to the Apple device user. Their       leveraging those brands, a huge number of           for an anchor OTT service, Netflix will need
    free-year subscription offer to buyers of Apple      people are expected to try it6 in the first year.   to make significant changes in either their
    hardware sends a clear message that TV+ is           The recent free year offer for many Verizon         platform, or through M&A.
    being targeted at the Apple device owner. And        customers7 only reinforces that.                        Of course, maybe I am wrong about the
    TV+ lacks an Android or Windows app, even               But what I find most compelling about            importance of live/linear. Or maybe the Live/
    though the persistent Android or Windows             the Disney+ offer is not so much the service        Linear services will be met over the emerging
    viewer can use their browser to view on
    https://tv.apple.com/. My son, a Google Pixel/
    Windows/Macbook user was not aware of that.
    So is TV+ meant to bolster Apple hardware
    sales, or vice-versa? The messages are mixed,
    and confusing.
        Apple’s approach to episode availability –
    drop the first 3 episodes, with a new episode
    each week – makes sense, given their lack of
    library depth. Had they dropped entire seasons
    at once, subscribers could binge all their
    interesting content during the trial period, never
    to return. Ironically, data shared by Netflix5
    may have helped them decide on the 3 episode
    drop in order to “hook” the audience, and
    keep them coming back weekly. At least with
    this approach, if one of the shows catches a
    subscriber’s interest, there is a chance they will
    return. And the weekly drop allows show buzz

4      OTT Executive Magazine
Stream Wars: The Battle Heats Up - Beyond TV Pro Streaming Cognitive TV ottexec.com/magazine - OTT Executive Summit
ATSC3.0 broadcast infrastructure, with the
                                                                       News and Events
internet/OTT primarily handling VOD traffic.
But I don’t think that will happen soon enough,                                OTT Fest Launch Is
and the battle is raging now.
    My bet is on Disney (Disney+/Hulu/ESPN+)
for the anchor OTT service winner. But maybe
                                                                                a Huge Success
Netflix is OK with that?                                                                     By: Brian Mahony
Kurt’s Prediction
    It will probably take a while – maybe a year –
to determine winners, given how the competitors                 N     etflix will spend $15 billion on original content this year. Other OTT gi-
                                                                      ants such as Apple TV+, Amazon Prime, and HBO Max are spending bil-
                                                                lions more. So it’s no surprise that new conferences and communities would
are stacking their subscriber decks with free
offers. Due to a recent iPhone upgrade, my entire               emerge to tap into this huge investment of capital. Of course this event would
family can enjoy a free year of Apple TV+. I am                 pop up in New York or Los Angeles, right? Nope- Atlanta!
also a Verizon Wireless Unlimited customer, so                     OTT Fest (www.OTTfest.com) launched this year in the burgeoning con-
Disney+ will be free for my family for the first                tent metropolis of Atlanta. Fittingly, the opening keynote was by Ozzie Areu,
year. I would suggest we all ignore the “number                 CEO of the newly launched Areu Brothers Studios. Ozzie has been methodi-
of subscribers” or “number of households                        cally building his new media empire, recently acquiring OTT Platform En-
subscribing,” and wait for the “number of paid                  davo Media (which itself acquired OTT content aggregator Footprint.TV last
subscriptions” stats. In any case, the headlines                year) and, just announced at the show, THEA—a sort of local access platform
extracted from active user numbers will keep us                 for a slate of OTT channels. In his keynote chat Ozzie highlighted his studio’s
entertained through the next year.                              strategy which is to focus on long form and short form content—both TV and
    In the meantime, it’s fun to handicap the                   film—that helps to tell the stories of underserved communities such as women
players. And I believe the most important weapon                and people of color. This strategy fills a key gap in the industry and is a
in each player’s arsenal is their brand. I know                 perfect fit for the Atlanta content community which already includes heavy-
Netflix and Hulu have built great brands, because               weights such as Tyler Perry Studios, CNN, and Turner Networks.
my family sits down to “watch Netflix” or “watch                   Co-founders of OTT Fest are Paul Hamm, Endavo Media CEO, and Kate
Hulu.” But what exactly do the Netflix and Apple                Atwood, President of THEA; both who now work for Ozzie. Trender Re-
TV+ brands mean, and what are they becoming?                    search/OTT Executive is also a partner in this new endeavor and provided
In comparison, my household has Amazon Prime,                   about a third of the speakers, including the powerhouse opening panel which
and when looking for a show, we will “check if                  consisted of moderator James Norman, CEO of Pilotly; Randy Ahn, Direc-
it’s on Amazon.” We do not “watch Prime.” Pay                   tor of the Roku Channel; Jada Leng, Director of Content Strategy for PBS;
attention to the way people refer to these brands.              Maxie Collier, Founder of Super Livestreams; and Stefan Van Engen, SVP of
Ask yourself how many people will ever say                      Content Programming at Xumo.
“I’m going to watch TV+ tonight?” Our language                     The second day’s keynote included an excellent panel made up of leading
reveals the difference.                                         women in entertainment. Doris Casap, SVP of Film Programming for HBO
    Which brings me back to Playstation VUE.                    flew down from New York to anchor this interesting and informative conver-
On their soon-to-be-retired home page, it says:                 sation. The other panel members were Tyler Perry Studios’ Michelle Sneed,
“Watch the best of live streaming TV and On                     Scripps TV’s Cheryle Harrison, Areu Brothers Studios’ Kim Leadford, and
Demand shows on your favorite devices – 		                      entertainment industry consultant Angela Northington. The panel was moder-
no PlayStation® console required.”                              ated by Mo Ivory, Professor at Georgia State University.
    So I don’t need a Playstation to watch                         OTT Fest was co-located with A3C, which draws almost 40,000 attendees
Playstation VUE, and they know they need to tell                for its conference/festival across the music, tech, video, and culture landscape.
me that? So why did they name it that???                        A3C, short for “all three coasts”, started as a hip-hop music festival and like
    Branding matters.                                           Austin’s South by Southwest grew to include cultural and tech components.
    I think Disney+ has already won the brand                                                                          OTT Fest’s focus on
identity battle, because in the consumer’s mind,                                                                       media and entertainment
Disney IS entertainment, and their underlying                                                                          is the third leg of the stool,
brands only reinforce that. Pixar has never                                                                            tapping into both the local
created a bad movie. People notice anything                                                                            community and national
related to Star Wars. And Marvel’s brand? As                                                                           (and global) network of
Stan Lee would say – ‘nuff said8. �                                                                                    up-and-coming content
                                                                                                                       creators and distributors.
References:                                                                                                               In addition to the
1. https://variety.com/2019/digital/news/                                                                              amazing speaker lineup,
netflix-look-behind-curtain-1203169528/                                                                                sponsors and participating
2. Other People’s Money                                                                                                brands included a mix of
3. https://variety.com/2019/digital/news/
netflix-debt-junk-bond-2-billion-content-spending-1203377007/
                                                                                                                       corporate and entertain-
4. https://www.fool.com/investing/2019/10/02/how-apples-                                                               ment industry brands such
shift-away-from-devices-could-disappoin.aspx                    as Delta Airlines, Georgia Power, Netflix, Whistle Sports, Mailchimp, and
5. https://www.theverge.com/2015/9/23/9381509/                  Tenderfoot.TV.
netflix-hooked-tv-episode-analysis                                 Next year look for an expanded speaker lineup as well as a pitch contest
6. https://www.fool.com/investing/2019/08/29/disney-plus-
launch-may-be-huge-survey-fan-website.aspx
                                                                for new TV pilots and films that will compete to win exclusive production
7. https://www.verizon.com/about/news/                          and distribution deals. Anyone interested in speaking or sponsoring next year
verizon-disney-plus-12-months                                   should contact me at bmahony@OTTexec.com. �
8. https://www.youtube.com/watch?v=cGarqd3xC9A

                                                                                                                                   Fall 2019            5
Stream Wars: The Battle Heats Up - Beyond TV Pro Streaming Cognitive TV ottexec.com/magazine - OTT Executive Summit
Best Practices
              Balancing Price, Content and Experience Creates
                  Winners and Losers of Streaming Video
                                                                By: Michael Jones

T    hree basic levers determine the success of
     any streaming service from a consumer
perspective – the cost of the subscription, the
                                                     viewing time. AT&T has been aggressive in
                                                     licensing content for HBO Max as it has little
                                                     control over the price lever given existing price
                                                                                                                                       Michael Jones is SVP
                                                                                                                                       and Head of Busi-
                                                                                                                                       ness Development
                                                                                                                                       at VisualOn. In this
content included in that subscription, and the       structures for pay TV and HBO Now.                                                role, Michael leads
quality of the viewing experience. Service                                                                                             strategy, partner-
providers are constantly trying to balance these     Viewing Experience                                                                ships and products.
                                                                                                                                       Previously, Michael
levers to create satisfied and loyal subscribers         QoE can help streaming services
                                                                                                                                       was SVP Business
for long-term success. Improving content or          differentiate in an increasingly competitive                                      Development at IBS,
the quality of experience (QoE) can grow             market. Frictionless set-up among devices,             Inc., Managing Director and Global Head of TMT
subscribers or compensate for potential churn        easy-to-navigate electronic programming                Investment Banking and Principal Investment at
                                                                                                            Samsung Securities and Head of Asia Technology
from a price increase. Likewise, lowering            guides and an optimized viewing experience             Investment Banking at BofA Merrill Lynch.
prices can increase subscribers, as Hulu did in      for any given device are examples of how
February 2019.                                       experience can gain new subscribers – and
                                                     potentially command higher pricing.                 on new subscriptions to grow revenues. In a
Price                                                    Let’s look at Netflix to examine these key      2016 survey by Cowen and Company, cost
    In 2007, Netflix signed an agreement for         levers further.                                     effectiveness was cited by 58% of respondents
the online streaming rights of Starz, providing          By the time Starz terminated its streaming      as a reason to subscribe.
access to more than 2,500 titles, including          rights deal, Netflix had the financial strength         Netflix also offers a very strong QoE. In
recent premium movies from Disney and Sony.          to license rights directly from content owners,     2018, the company spent $1.2B on R&D and
Streaming these titles was available, for free, to   including top films from studios as well as         has spent the past decade optimizing VOD
Netflix DVD subscribers with plans of $8.99/         popular television series. Netflix found that       delivery. The company has pioneered new
month and higher. This essentially established       many viewers “binged” by watching many              technologies for streaming, such as the Open
the standard pricing structure of streaming          episodes of popular TV series in a row, and this    Connect distributed CDN, which optimizes
services as we continue to know it today, and        meant that these were the most watched content      cost and performance by hosting content
it did so without taking into consideration the      on Netflix. According to Nielsen, the top three     directly in ISP’s data centers. Likewise, their
cost of content development and licensing. If        programs for Netflix in 2018 were The Office,       Dynamic Optimizer offers extremely efficient
a provider increases prices well beyond what         Friends and Grey’s Anatomy – all having more        compression, minimizing bandwidth costs and
exists today, it will impact subscriber count        than 200 episodes.                                  increasing resilience to network performance
(e.g. historically, Netflix subscription counts          When Netflix started streaming video, it        issues. Netflix also works with hardware
have been price sensitive). Otherwise, it will       was included for free with its DVD mailing          vendors to qualify products as “Netflix
need to consider ad-based VOD (AVOD)                 service. By 2011, the price had increased just      supported”. Finally, Netflix has extensive
options to subsidize its costs.                      $1, to $9.99 per month. In July 2011, Netflix       analytics data for QoE and user behavior.
                                                     separated its DVD and streaming services into
Content                                              discrete subscriptions, each priced at $7.99/
    The content lever is a difficult one as          month.
content owners are now starting to realize the           At the end of 2011, according to Netflix
true value of streaming rights (e.g. the cost        data from its annual report, the service had        According to Sandvine, Netflix accounts for
of streaming rights for Seinfeld increased 5X        21.6M global subscribers. By the end of 2018,       3% of all upstream internet traffic, representing
over a 5-year period). According to Netflix, the     the number had risen to 139.3M. ARPU had            the vast analytics data they collect. This allows
company spent 85% of its streaming content           actually dropped from $11.84 (representing          them to optimize service quality, provide a
budget in 2018 on originals, yet Nielsen data        customers subscribing to both DVD and               strong recommendation engine and gain deep
shows this content only accounted for 37% of         streaming services) to $10.31 per streaming         insights for the creation of original content.
                                                        customer. Netflix had kept prices low, relying   Netflix built strong subscriber growth by using
                                                                                                         two of the three levers for a streaming service
                                                                                                         – increasing content and QoE while keeping
                                                                                                         pricing relatively flat. Going forward, Netflix
                                                                                                         is losing some key content for the U.S. market
                                                                                                         (The Office, Friends and Grey’s Anatomy are
                                                                                                         all moving to competitors) and has no stated
                                                                                                         plan to lower prices. Its growth will depend on
                                                                                                         leveraging analytics data to provide tailored
                                                                                                         content and user experiences, as well as
                                                                                                         utilizing new international content to expand in
                                                                                                         international markets.
                                                                                                             Today, Netflix has a market cap of $120B.
                                                                                                         At the end of 2018, Netflix had 2.7M DVD
Stream Wars: The Battle Heats Up - Beyond TV Pro Streaming Cognitive TV ottexec.com/magazine - OTT Executive Summit
subscribers, down from 3.3M in 2017 and
4.0M in 2016. If not for streaming, Netflix
would be dying or dead.

Disney and AT&T Say “Not So Fast!”
    Building off of the Starz deal in 2008,
Netflix has created a huge amount of
shareholder value, as well as a strong User
Data Base (UDB) of hundreds of millions
of users. Netflix has also built a very strong
recommendation engine, a treasure trove of
user behavior and QoE data, and a strong glass-
to-glass streaming video delivery chain. Netflix
does not share the data of, or access to, their
subscribers.
    Disney, AT&T and others have taken
notice. They doubtless realize that Netflix
is approaching an inflection point in content
ownership, whereby their original content will
overtake licensed content as the primary driver
of viewership. Netflix is also aggressively
building out its global content and subscriber
base.
    Disney spent $2.5B to gain a controlling       2016, Netflix had a global streaming ARPU of        monthly subscriptions, do without, or find
interest in BAMTech, which has become              $8.61, offering Disney and other studio content     ways to access content for free (e.g. piracy or
Disney’s streaming technology provider and         as well as their own originals – which likely       account sharing). These issues place content
operator. Disney is also forgoing billions of      represented a better value than Disney+ or the      and streaming services in a difficult position:
dollars of content licensing fees – The Wall       Netflix of today.                                   content development and licensing is expensive
Street Journal estimates that Disney was              Meanwhile, AT&T’s WarnerMedia is                 and prices need to support these costs. Also,
receiving $500M annually just from Netflix for     building out HBO Max. While pricing has not         as Netflix has shown, building a strong
streaming licensing.                               yet been announced, it is widely believed that      connection with the subscriber, and collecting
                                                   pricing will be the same as HBO Now ($14.99         the associated analytics has tremendous value.
                                                   per month) or, at most, a few dollars more.         The value of this data is driving the D2C trend
                                                   AT&T does not want to undercut existing             – services will be loath to allow aggregators to
                                                   HBO Now and HBO pay TV subscribers, so is           control customer data and access.
                                                   being aggressive in building out high-demand            The easiest and cheapest lever is QoE.
                                                   content to make the service compelling (i.e.        In 2018, Netflix’s R&D spending was 10%
                                                   using the content lever to build subscriptions).    of its content expenditures. Furthermore,
                                                   In addition to HBO content such as Game of          Netflix’s technology not only helps deliver
                                                   Thrones, The Sopranos and The Wire, AT&T            better experiences, but also saves bandwidth,
                                                   has spent an estimated $2B+ to secure the           saving money and allowing the service to
                                                   rights to Big Bang Theory, Friends, and Two         reach customers who otherwise might not have
                                                   and a Half Men.                                     connections suitable for watching video. This,
    Disney is also spending billions to build                                                          ultimately, can open up new markets, new
and market Disney+. Meanwhile, the starting        How to Stand Out in a Glut of Streaming             customers and new business models. �
price is $6.99 per month – and discounts are       Services?
available to Disney’s D23 fan club members             As the D2C market expands to include
for under $4 per month. Under CEO Bob Iger’s       Apple+, NBCUniversal Peacock, Discovery/
direction, Disney will lose billions building up   BBC, etc., subscription fatigue is a real threat.
Disney+ in order to gain a strategic position in   Consumers simply will not want to navigate
the future of video.                               different apps, keep track of what is playing
    While Disney has top-tier content, including   where and not benefit from comprehensive
Marvel, Star Wars and Pixar, the Disney+           interactive features such as recommendations.
library is much smaller than that of Netflix,      Ultimately, disparate D2C service offerings will
with approximately 500 movies and 7,500 TV         be a less compelling solution for consumers
episodes at launch; roughly half the size of       from a price and convenience standpoint.
the Netflix library, according to data from the    Technology can make up for this somewhat
unofficial Netflix online global search website.   by leveraging the advantages that streaming               Join OTT Exec
To provide a larger library, Disney is bundling    has over linear TV. It can offer customized
Disney+ with ESPN+ and Hulu for $12.99             experiences, allowing viewers to choose their           Group on LinkedIn:
per month, a discount of about $5 based on         desired camera angles and replays, watch
individual prices.                                 multiple streams on the same screen and tailor           https://www.linkedin.
    Despite the consumer-friendly $6.99 price      their viewing experience for their viewing
of Disney+, it is unlikely that Disney will keep   environment and device.                                  com/groups/1994425/
that price in the long term. Furthermore, in           Consumers will have the option to rotate

                                                                                                                                       Fall 2019          7
Stream Wars: The Battle Heats Up - Beyond TV Pro Streaming Cognitive TV ottexec.com/magazine - OTT Executive Summit
Executive Insights
                           Will Media’s Quest for Scale Ultimately
                                    Lead to Extinction?
                                                                    By: Virginia Juliano

    T    he flurry of media mergers and
         consolidations over the last 2 years has
    reinforced the concept that scale is necessary
                                                        rapidly spread across the planet. The cloud
                                                        blanketed the atmosphere and blocked out
                                                        all sunshine, which turned the earth cold,
                                                                                                                                           Virginia Juliano is
                                                                                                                                           the Founder & CEO
                                                                                                                                           of CobbleCord (www.
    to effectively compete in this new, disrupted       halted photosynthesis and destroyed the food                                       CobbleCord.com),
                                                                                                                                           a disruptive startup
    entertainment landscape. But while watching         supply, leading to a complete collapse of the                                      that helps people
    The Day the Dinosaurs Died (ironically, on          food chain and mass starvation. The largest                                        cobble together
    Netflix) I had a bit of a revelation that media’s   beasts who required the greatest amounts of                                        personalized bundles
    rush to get bigger in order to survive may be       sustenance in order to survive were the hardest                                    of both free and paid
                                                                                                                                           streaming services.
    misguided and even downright dangerous to           hit, and quickly died out.                            Its patented process uses customer content,
    the future of these behemoths.                                                                            device, internet and price preferences to craft a
        The Day the Dinosaurs Died describes the        Shifting Winds                                        custom list of services for each user, empowering
                                                                                                              them to get the most from streaming and get rid
    fascinating chain of events that occurred after a       In our modern media saga, the winds have          of cable.
    mega-asteroid hit the earth off the coast of what   again been shifting and the apex predators
    is now the Yucatan peninsula some 66 million        of today may also be the most vulnerable.
    years ago. According to scientists, dinosaurs       Activist investors calling for divestiture and     gloom. Let’s remember that in prehistoric
    were the largest “apex predators” of the time.      new management (in the case of AT&T);              times, the dinosaurs’ extinction heralded some
    But because of this they were actually the          increased governmental anti-trust and privacy      positive developments as well. With those large
    hardest hit by the resulting impact. More on        scrutiny (Facebook, Google); overpayment           reptilian predators out of the way, mammals
    that later.                                         for lackluster assets (AT&T, Disney); messy        (who were much smaller and required much
                                                        cultural fit (AT&T/Time Warner, Viacom/            less food) began to flourish. This, of course, led
    Today’s Apex Predators                              CBS); and investor hyper-sensitivity to small      to our caveman ancestors and the proliferation
        The equivalent apex predators in today’s        shifts in subscriber numbers and constant          of the human race.
    world of media are the horizontally and/or          skittishness regarding debt load (Netflix) are         Similarly, the leaner, more agile players
    vertically integrated corporations that have        just some of the hazards that have recently        could be better positioned to make the ongoing
    been bulking up in order to compete in the          surfaced in the race to scale.                     quick moves needed in today’s increasingly
    streaming wars, as well as the large tech               Not to mention that the top-heaviness and      complex media terrain – provided they’ve been
    companies that have muscled their way into          bloated infrastructure usually needed to support   built around smart business models and sound
    the space. The sharp-elbowed game of content        such large companies generally creates entities    financials.
    creation, licensing and distribution (and of        that are slow to respond or pivot, which is            So perhaps ViacomCBS is exactly the size
    course, advertising) between the many players       an increasingly important ability in today’s       that it should be right now. Maybe it should
    is getting even sharper. In this world, bigger      ever-evolving media reality. It also makes         stand firm and stoutly ignore the constant
    means having more power and leverage to             them reluctant to take chances on lower-           drumbeat demanding that it get bigger. It’s a
    negotiate across multiple fronts and the ability    margin areas that don’t serve their big balance    choice that just might help it avoid becoming
    to better defray costs across a large footprint.    sheet requirements, even if they do serve an       too big to sustain itself during the next
        AT&T swallowing DirecTV and later Time          emerging customer need – a classic Innovator’s     inevitable famine. �
    Warner; Disney gobbling up Fox’s assets;            Dilemma situation.
    Discovery buying Scripps; Facebook, Google              Plus, these companies have existed in a
    and Amazon being so inherently huge for so          bull market for the past decade. The specter
    long; and even Netflix endlessly growing its        of a recession dust cloud could certainly
    debt to capture ever more subscribers and           block out the media giants’ sunshine and
    high-profile content are just a few examples of     make them more vulnerable
    the “bigger is better” approach that’s been the     than their smaller, more
    accepted path to greatness. And let’s not forget    nimble counterparts. When
    Viacom reuniting with its CBS brethren, yet         cost-conscious consumers
    continuing to get penalized by the markets for      start flexing more control
    still being too small.                              over their entertainment mix,
        However, size and scale can become a            bundle backlash and non-stop
    negative, as was ultimately the case in the         subscriber churn could easily
    dinosaur era. It turns out that the majority        dry up the high volume of
    of dinosaurs did not die directly from the          capital lifeblood needed to
    asteroid’s impact. Instead, the force of the        sustain their bulk and fuel their
    crash (it was traveling at an estimated forty-      required growth.
    five thousand miles per hour) spewed millions
    of tons of displaced rock, dust and debris miles    Only the Agile Survive
    into the air, producing a thick dust cloud that       But it’s not all doom and

8      OTT Executive Magazine
Stream Wars: The Battle Heats Up - Beyond TV Pro Streaming Cognitive TV ottexec.com/magazine - OTT Executive Summit
Stream Wars: The Battle Heats Up - Beyond TV Pro Streaming Cognitive TV ottexec.com/magazine - OTT Executive Summit
Executive Q&A

      OTT Technology Trends with ATEME
                  Interview by Kurt Michel with Remi Beaudouin, Chief Strategy Officer, ATEME

 T  render Research’s Kurt Michel recently
    caught up with Remi Beaudouin, Chief
 Strategy Officer at ATEME to talk about
                                                    As a result, our customers can enjoy scale
                                                    economies by streaming/transmitting more
                                                    channels over the same given pipe.
                                                                                                                                      Remi Beaudouin
                                                                                                                                      is Chief Strategy
                                                                                                                                      Officer at ATEME. In
 Quality of Experience, core technologies               Others standardize on our solution because                                    his role, Remi leads
 leading the OTT market as well as cloud            of the convergence aspect, leading to lower                                       the corporate team’s
                                                                                                                                      global strategic and
 architecture.                                      OPEX: we have a unique virtualized software
                                                                                                                                      marketing initiatives,
                                                    suite to do any input/codec/resolution/packag-                                    helping to ensure
 Kurt: Hello Remi. Thank you for taking the         ing.                                                                              ATEME keeps pace
                                                        Last, but not least, most of our customers –                                  with solutions and
 time today to share some of your insights with
                                                                                                         engagement model innovations. He is responsi-
 our readership. Could you please share a bit of    or shall we say partners - leverage our innova-      ble for developing key strategic partnerships.
 ATEME’s background and its role in the video       tion. Engineers comprise three-quarters of our       Remi joined ATEME in 2005, most recently serv-
 industry with us?                                  staff. We are involved in all relevant standards     ing as VP of Marketing, following successive Field
                                                                                                         Application Engineer and Product Marketing
                                                    activities as well as many research projects.        Manager positions. Prior to joining ATEME, Remi
 Remi: Hi Kurt, first thank you for giving me       As a result, we can provide our customers with       worked at Envivio and Thales Airborne Systems,
 the opportunity to let OTT Exec readers learn a    state-of-the-art video technologies like HEVC/       having gained a master’s degree in signal pro-
                                                    AV1, 4K and all flavors of HDR. This, in turn,       cessing from ENSEIRB, Bordeaux.
 bit more about ATEME.
     ATEME is a global leader of video com-         provides tremendous differentiation for our
 pression and delivery solutions. Leveraging        customers and reduces their customer’s churn.      there is a royal wedding in the UK, program-
 a task force of close to 300 people over 20                                                           mers create a channel about Kings & Queens.
 countries, we serve the leading Content Own-       Kurt: What is one of the fundamental changes       This channel might last for one month around
 ers, Broadcasters, Stations, MVPDs (be they        that you see that OTT technology has enabled       the event and then disappear. This approach
 traditional or virtual) and OTT pure players.      in the media and entertainment industry over       allows vMPVDs to stay closer to the news and
 The video industry is a mature market, with its    the last year or two?                              social media trends and so engage more with
 first satellite launch over 30 years ago. Mature                                                      their customers.
 does not mean stalled. Actually, quite the op-     Remi: One obvious change we have wit-
 posite. We are facing and experiencing a mov-      nessed in the OTT market is the request for        Kurt: What are some of core technologies that
 ing landscape, a management of change with         improved Quality of Experience. I am not           are leading OTT market evolution today, and
 regards to video services and operations. And      only talking about picture quality, but also       what role is ATEME playing in enabling the
 this is where ATEME comes into play. Based         latency (obviously), immersive audio, and new      use of those technologies?
 on our tens of thousands of man-years in video     ways of watching-like Augmented Reality.
 coding expertise – the company was founded in      These changes are definitely coupled with the      Remi: There is the classic evolution of the
 1991– we help to our customers transform their     mainstream viewership position taken by OTT        video payload standards: new codecs (like
 video delivery as part of their change manage-     4 years ago, when nobody was complaining           AV1), new resolution (4K), and new packaging
 ment process. This can be achieved through         about long delay on OTT or a me-too approach       formats (CMAF), especially when they enable
 various angles:                                    vs Broadcast. But at that time, the audience       better services (low latency). This change is
     Some customers’ 3rd party Content Deliver      ratings were not very high.                        happening across the TV Industry.
 Networks deploy our solution to lower the total        Now that OTT is becoming of one the main          More noticeable is the adoption of multi-
 cost of ownership of video transmission. Based     ways (if not the main way for the Z genera-        cloud approach. In order to gain flexibility,
 on video expertise, we can achieve high video      tions) to watch content, the expectation bar has   scalability and cost effectiveness, all ATEME
 quality at lower bitrates than other solutions.    been raised.                                       service provider customers have deployed a
                                                                         If we look forward, another   multi-cloud strategy. Some of them are mixing
 As a re-                                                           emerging fundamental change        their on-premise private cloud with off premise
                                                                    is the need for personalized       clouds, while others mix and use several public
                                                                    TV, also known as “a la carte”.    clouds. Our value proposition is at the software
                                                                    This is almost already the case    layer, not in the infrastructure. Our role is to
                                                                    for the SVOD services based        make sure we provide them with an efficient
                                                                    on recommendations and             solution that is infrastructure- agnostic so they
                                                                    preferences. We see this trend     can leverage the flexibility provided by the
                                                                    coming for linear services with    multiplicity of the choices.
                                                                    the emergence of pop-up chan-
                                                                    nels. These channels are not       Kurt: Can you comment on the state of AV1
                                                                    permanent channels, but rather     codec adoption in the industry? Is it gain-
                                                                    time-limited. Their editorial      ing greater usage? And if so, are there any
                                                                    line is based on outside popular   particular areas of the market that are leading
                                                                    events/trends. For example, if     the way?

10   OTT Executive Magazine
Remi: AV1 is definitely gaining traction year     cloud as well) provides stunning advantages on      and more OTT services - this is a no-brainer.
after year, trade show after trade show. As       flexibility, scalability and price. We mentioned        We are brainstorming how we can bring
usual, the ramp up takes some time; the eco-      time-limited pop-up channels earlier. Only          more video processing intelligence inside the
system, especially the decoding devices, need     cloud-based headends with all underlying tech-      network so we can optimize the routing and
to come to the market. We are getting there.      nologies (virtualization, full IP) can enable set   delivery of OTT services. On top of that, there
At IBC, we demonstrated an end-to-end AV1         up quickly enough so the channel can be mon-        is a clear opportunity to better monetize the
processing chain based on our TITAN solution      etized over a viable duration. The same goes        content through an improved delivery system
for encoding and decoding, using Broadcom’s       with VOD workflows: the number of shows             that is also customizable. We also discussed
BCM72180 AV1 set-top box, in preparation for      vary based on time-of-year. There is a pro-         personalized TV. What if we could create
a new era for OTT services.                       nounced peak during episodic TV season finals.      Kurt’s channel bouquet, just for you? You
Pure OTT players, sometimes called New            Having the ability to produce the regular flow      could enjoy your favorite niche content and
Media - like Netflix or YouTube - have stated     on site and then off-load it to the cloud during    OTT players could generate additional revenue
their intentions to support AV1. This obviously   peaks is key. Last, but not least, providers can    with targeted advertisements.
is a source of adoption. Traditional service      lower their operational expenditures with CPU
providers now follow the same path.               spot instances - not on a single cloud, but on      Kurt: Thanks Remi. I’m especially enthusias-
                                                  a multiple cloud approach: prices are always        tic about “Kurt’s Channel”. We are seeing a bit
Kurt: You have mentioned hybrid-cloud and         better with competition!                            of progress there now, so maybe we are exiting
multi-cloud architectures as some of the more                                                         the hype cycle and shifting to practical person-
exciting technical developments available to      Kurt: Over the next 3-5 years, what challenges      alization. With the onslaught of content now
today’s service providers. Can you explain        face the OTT industry that ATEME is focused         hitting us, it is becoming increasingly required
some of the benefits of these architectures,      on addressing?                                      to combat search fatigue.
and some of the unique challenges that these                                                              Thanks for your time, and I look forward to
architectures present?                            Remi: When we look forward, we clearly see          your future innovations! �
                                                  network optimization and analytics as the next
Remi: Multi-cloud (and I would add hybrid         big things. Booming demand will lead to more

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                                                                                                                                      Fall 2019          11
Trends & Analysis
                                                            Pay-TV Services Decline as
                                                          OTT Services Continue their Rise
                                                                                             By: Elizabeth Parks

 T    elevision industry participants are
      grappling with the new realities of the US
 pay-TV industry. Traditional pay-TV providers
                                                                                 of subscriber losses. Consolidation has created
                                                                                 large, innovative, integrated companies that
                                                                                 impact creation, licensing, and distribution of
                                                                                                                                                                                    Elizabeth Parks,
                                                                                                                                                                                    President of Parks
                                                                                                                                                                                    Associates, leads all
 (MVPDs) have faced continued subscriber                                         live channels and content assets. vMVPDs,                                                          teams within Parks
                                                                                                                                                                                    Associates. She
 losses due to increasing consumer choice                                        or pay-TV service providers that offer online                                                      oversees all research
 from OTT services. Research from Parks                                          versions of traditional cable TV, continue to                                                      and directs the
 Associates finds that the average standalone                                    gain subscribers at a rapid pace.                                                                  integrated strategic
                                                                                                                                                                                    communications
 pay-TV service ARPU (average revenue per                                            Subscriptions to vMVPD services have
                                                                                                                                                                                    plan for Parks Associ-
 user) declined 10% from 2016 to 2018, and                                       doubled over the last 18 months, making it                           ates; including advertising, public relations, and
 consumer-reported monthly spending on pay                                       one of the fastest growing sectors in the TV                         marketing campaigns. Elizabeth is the key organ-
 TV declined from $84 to $76.                                                    marketplace. Monthly fees are lower for online                       izer for all of Parks Associates’ events, includ-
                                                                                                                                                      ing CONNECTIONS™; and she supports Parks
    Self-reported expenditures on non-pay-TV                                     pay-TV subscriptions than for traditional pay                        Associates’ Business Development Team with
 home video entertainment also declined 30%                                      TV, but providers find lower ARPU preferable                         prospective client searches, overall support, and
 per month over the past seven years, peaking at                                 to cord-cutting subscriber losses. New online                        maintenance of Parks Associates’ databases.
                                                                                                                                                      Elizabeth joined Parks Associates on a full-time
 nearly $40 in 2014 to slightly over $20 at the                                  competitors, or virtual MVPDs, have also                             basis in 1998 after graduating from the University
 end of 2018, according to the study.                                            created a new segment of competition within                          of Texas at Austin with a BA in psychology.
    Spending on internet video is the only                                       pay TV with packages of content and features
 category to hold steady throughout the                                          that differ, in some cases significantly, from
 time frame, staying at $8-9 per month since                                     traditional service offerings.                                     through trials to avoid paying. While some
 2014, showing the power of streaming                                                These trends have a significant impact on                      trial abuse likely occurs, the high rate of
 and downloaded content from the internet.                                       broadcasters and cable networks. While the                         conversion suggests that most users are
 Subscription online video is the only                                           US market includes more licensing customers                        actively evaluating for genuine adoption. 58%
 growth category for consumer-paid video                                         (pay-TV providers), the pricing pressure for                       of US broadband households who trial an OTT
 entertainment beyond pay TV.                                                    consumer services is forcing increased conflict                    video subscription service convert to paying
    Operators, struggling with declining ARPU                                    in carriage negotiations. Such conflicts fuel the                  subscribers.
 for standalone pay-TV services, are anxious to                                  interest in continued vertical and horizontal                          Free trials are an established and effective
 leverage this trend. They are taking differing                                  consolidation in order to achieve greater scale,                   part of the OTT landscape, but as they become
 approaches. Some, including Comcast and                                         leverage, and control.                                             a commoditized offering in an increasingly
 DISH, are offering subscriptions to third-party                                     New research from Parks Associates finds                       crowded market, services will experiment
 OTT video services and are integrating them                                     that the conversion rate from a free trial to a                    with the model to make their service stand
 into their discovery interfaces. Partnering                                     paying subscriber is higher among consumers                        out. For example, Sling TV recently began
 gives operators a chance to serve as content                                    who trial multiple services. Among users                           allowing non-subscribers unauthenticated
 aggregator, a familiar position. Others,                                        trialing three or more services, almost 80%                        access to limited content, essentially a pre-trial
 including AT&T and DISH, are expanding their                                    subscribe to at least one of the services that                     opportunity that encourages viewers to begin
 competitive reach online and have introduced                                    they tested.                                                       an actual trial.
 vMVPD (virtual, i.e. OTT) services.                                                 Some OTT providers have expressed                                  Subscriptions, formerly representing just
    There is an urgency to change the pattern                                    concerns that consumers might be churning                          over half of total online video spending in

     Likelihood to Subscribe to an Online Pay-TV Service (2018)
                                          Among US Broadband Households Not Subscribing to                                  Overall vMVPD Service Adoption (2017-2018)
                                                  Online Pay TV in Specified Groups
                                                                                                                                             Among US Broadband Households
                                    50%

                                                                                                                                    20%
                                    30%                                                  Very likely
     % Rating Level of Likelihood

                                                                                         (Rating 6-7)
                                                                                                             at Least One Service
       (Rating on a 7-pt. Scale)

                                                                                                               % Subscribing to

                                    10%
                                                                                         Likely
                                    10%                                                  (Rating 5)

                                                                                         Not Likely                                 10%
                                    30%                                                  (Rating 1-3)

                                    50%

                                    70%                                                                                             0%
                                                                                                                                          Q1/2017       Q3/2017           Q1/2018           Q3/2018
                                    90%         Q1/2018                Q3/2018
                                                                                                                                                                                        © Parks Associates
                                                                                        © Parks Associates

12   OTT Executive Magazine
Pay-TV Service Subscriptions (2011-2019)
                                                                                                                                                             Uptake of OTT Services by Pay-TV Subscription Groups
                                                       Among US Broadband Households
                                                                                                                                                                                Among US Pay-TV Service Subscribers
                                                                                                                                                           100%
                           100%
                                                                                                                                                           90%

                                                                                                                           % Subscribing to OTT Services
                           90%
                                                                                                                                                           80%
                           80%
 % Subscribing to Pay-TV

                                                                                                                                                           70%
                           70%
                                                                                                                                                           60%
                           60%
                                                                                                                                                           50%
                           50%
                                                                                                                                                           40%
                           40%
                           30%
                                                                                                                                                           30%

                           20%                                                                                                                             20%

                           10%                                                                                                                             10%

                            0%                                                                                                                              0%
                                  Q3/2011    Q3/2012     Q1/2014   Q4/2015   Q3/2016   Q1/2017   Q2/2018    Q1/2019                                                 Pay-TV       Pay-TV          Pay-TV     Pay-TV New Pay-TV Returning All Pay-TV
                                                                                                                                                                  Downgraders   Switchers       Upgraders   Subscribers  Subscribers    Subscribers
                                                                                                      © Parks Associates
                                                                                                                                                                                                                                      © Parks Associates

2012, now account for nearly 86% of all                                                  is a niche play, targeting a specific group of                                                         These factors will lead to a spike in the
internet spending on TV and movies. The                                                  consumers with a low price and family-friendly                                                     amount of money consumers spend per month,
new services launching over the next several                                             content.                                                                                           at least in the short term, as new services
months are taking different approaches as they                                               These and other new services due for                                                           such as Disney+ and Apple TV+ become
enter a crowded OTT market. While the US                                                 release, including Apple TV+, will drive                                                           available. Tradeoff decisions will come later.
market is important for Disney, the company                                              consumers to increase spending on internet                                                         To keep consumers spending at this higher
will ultimately measure the success of its                                               video and maximize the proportion of spending                                                      level, services will have to consistently deliver
Disney+ service on a global scale. AT&T likely                                           on subscriptions. The increasing number of                                                         volumes of compelling content within an
sees its AT&T TV offering as the evolution                                               new services will also test consumers’ tolerance                                                   engaging user experience. �
of its core pay-TV business rather than as an                                            for adding new accounts to their monthly
extension of its vMVPD efforts. Frndly TV                                                expenditures.

                                            Contact: info@ottexec.com for speaker and/or sponsor opportunities
                                                 at the OTT Executive Summit 2020 ~ May/June 2020, NYC.

                                                                                                                                                                                                                                     Fall 2019             13
Case Study
                                     Creating Roku Channels:
                                   A Few Experience-Based Tips
                                                           By: Alejandro Corpeño

 V     ideo streaming platforms are now part
       of the daily video consumption patterns
 of millions of people in the US and globally.
                                                    software development, but also on-device
                                                    testing, careful memory management, as well
                                                    as adaptable UX/UI patterns that adjust to the
                                                                                                                                      Alejandro Corpeño,
                                                                                                                                      Chief Executive
                                                                                                                                      Officer of Iconic is
 Content providers and networks are aware of        particular limitations (or extra features) of the                                 a Fulbright Fellow.
                                                                                                                                      He has an MBA in
 this and are racing to bring their offerings to    hardware your channel will run on.                                                Entrepreneurship
 OTT.                                                   Roku’s Developer portal (https://developer.                                   & Innovation from
     Amongst the OTT platforms available            roku.com) clearly states the certification                                        Vanderbilt Univer-
 today, Roku is one of the top players. They are    criteria and must-haves that channels should                                      sity. His 20+ years of
                                                                                                                                      experience on Web
 quickly gaining market share and making their      comply with to be certified and published for          + Mobile apps, Scalable Backend Platforms, TV-
 way into households through a wide range of        general availability on the platform. Aside from       apps (OTT), AR/VR, design and development give
 products, from low price sticks to high-end set-   these specifications, below are some tips that         him exceptional industry knowledge.
 top boxes.                                         will eventually save you a significant amount
     With a couple of years’ experience             of time, money, and frustration:
 developing Roku apps at Iconic, we have some                                                            to take place before your launch date.
 recommendations to share with those planning       1. Define your monetization model
 to adopt this platform.                                When setting up your channel, an essential       • SVOD: Subscription Video on Demand
     The first decision is to choose between        requirement is to specify and choose a                   For this model, you will need Roku Pay.
 using Roku’s Channel Template or creating a        monetization model. Don’t leave this decision        According to its website, “Roku Pay is the fast,
 Custom Channel. For brands that want more          until the end since it will have implications        and simple way to pay on your Roku streaming
 control of the user experience, design, and        in the development tasks and features that           device.” Your subscriber/viewer adds the
 other elements of their channel, the Custom        your application should have. The two most           payment information to their Roku account;
 Channel is the way to go.                          common monetization options are:                     then they can easily purchase subscriptions,
     Roku is a mature OTT Application                                                                    rent or buy movies or TV shows, and purchase
 Platform. Roku Channels are Apps, developed        • AVOD: Advertising - or Ad-based - Video            Roku device upgrades, offers, and accessories.
 on Roku’s XML framework called Scenegraph.         On Demand                                            With Roku Pay, you will not have to worry
 Roku also offers their native library called           Roku Advertising Framework (RAF)                 about developing the payment processing flow
 Component Controller, which introduces clear       implementation is required if you are planning       or the security considerations around credit
 standards to maintain the performance of the       to follow this model. By using RAF, you will         card transactions, Roku Pay takes care of all of
 channels in their platform, regardless of the      be able to measure the traffic and behavior          that for you.
 target hardware.                                   of users while ads are playing. Take into
     All Roku channels should run smoothly on       consideration that even though the RAF               2. Pay attention to data integrations for
 both low and high-end devices, making the          certification is relatively simple, it is separate   better visibility and positioning in the Roku
 development cycle a challenging and iterative      from the standard certification process, so make     platform.
 process. This process not only includes            sure you plan enough time for both processes             Aside from users installing your channel,
                                                                                                         Roku offers other discoverability tools such as
                                                                                                         Search and the Roku Channel. For your content
                                                                                                         to be visible on these other discoverability
                                                                                                         tools, you need to pay close attention and
                                                                                                         implement deep links. This will allow your
                                                                                                         channel to be discovered by users searching on
                                                                                                         the Roku Channel.
                                                                                                             Another integration option that gives your
                                                                                                         channel better placement on the Roku platform
                                                                                                         is the Roku Event Dispatcher (RED). This
                                                                                                         integration option will allow you to fire events
                                                                                                         when the app launches and track metrics, such
                                                                                                         as the number of installs, specific errors per
                                                                                                         device, and how many times an error occurs. It
                                                                                                         also allows you to prioritize your app’s content
                                                                                                         positioning on the search results by letting
                                                                                                         Roku know whether a user is authenticated into
                                                                                                         your channel. If a user is already authenticated
                                                                                                         into your channel and your channel is listed
                                                                                                         as an option for viewing on the search results,
                                                                                                         your channel will be listed above those where

14   OTT Executive Magazine
the user is not yet authenticated.                    Based on this experience, I recommend         Summit events. My company, Iconic, had the
                                                  you develop and test directly on both the low     opportunity to attend one of these events. One
3. Develop and test using the lowest range        and the high end of the device spectrum from      of our Roku Development Team members was
devices                                           day one. You can code specific rules that apply   amazed by the number and quality of insights
    Roku has some of the most popular OTT         to low-end devices, making alternative user       the Roku engineers shared during their talks
devices, mainly because of its low-priced         interaction and design patterns for devices       and workshops. They talked about integration
options and built-in Roku TVs (OEMs). This        with less processing power. For example, you      with Google devices as well as other relevant
is great for market penetration, and also you     can code to avoid animations or transitions on    and deeply technical, detailed topics.
as a content provider, for it offers a window     devices where they can’t run smoothly.                We highly recommend you enlist and
to millions of viewers. However; the tradeoff                                                       participate in the community. You will be able
is that you need to pay close attention to how    Be part of the community                          to meet and interact with those you’ve spoken
your application performs on those low-end           The Roku team is extremely accessible,         with through slack or email in their official
devices, which usually have very limited          and you should take advantage of this.            capacity; but through the community, the
memory and processing power. We learned this      You will probably have an assigned Roku           interaction will be more personal and casual.
the hard way. On our very first app, we started   Partner Success contact to handle all of the          In summary, we have found that Roku’s
developing and testing on high-end devices        communication between your team and               team is truly focused on bringing a top-quality
only; but when our QA team started performing     Roku’s engineering, certification, and business   experience to the users, and understand the
thorough testing on the full range of devices     teams. Additionally, you can find different       importance of the developer community in
they discovered it didn’t work correctly on the   communication channels with the community         realizing that mission. They genuinely care
low-end of the spectrum, creating a backlog of    on the Roku Developer portal https://developer.   about their developer community and their
bug fixes and performance improvement tasks       roku.com                                          channel partner business relationships. Good
that needed to be added to our development           If you get involved in the community,          Luck! �
queue. As a result, we had to deal with           and your channel starts to perform well, you
unexpected development roadmap adjustments.       might be invited to one of Roku’s Developer

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                                                                                                                                    Fall 2019         15
Executive Insights

     Metadata is the Answer – and the Problem
                                                                   By: Janet Greco

 N    ew dynamic user interfaces and
      recommendations can be the difference
 between winning and losing in the OTT space,
                                                      be able to use data in a meaningful way. But
                                                      the biggest issue for our customers is that
                                                      their organization is very siloed. How do you
                                                                                                                                         Janet Greco is an
                                                                                                                                         independent consul-
                                                                                                                                         tant with expertise
 but managing the backbone of consumer-               break those silos? And how do you make data                                        in enterprise TV
                                                                                                                                         metadata manage-
 focused search and recommendation is a               available for everyone that needs it?”                                             ment helping TV
 big challenge for incumbent broadcasters                While it is true that “data-driven” is the                                      businesses take a
 and content providers. The opportunity for           mantra of the day, the beating heart of the TV                                     more holistic view of
                                                                                                                                         their data operations
 operators will be huge once they get their           business revolves around proper metadata
                                                                                                                                         and helping them
 metadata management practices right.                 management in a way that “fixes” the multiple         solve problems around disparate workflows
                                                      data silos within legacy operators.                   and data sets. She founded the first disruptive
 Data Driven TV. Sounds great, doesn´t it?                                                                  pan-European TV metadata aggregation service,
                                                                                                            Infomedia S.A. in 1991. Her company: www.
     While OTT streaming services enjoy               Legacy innovations still in play                      broadcastprojects.com
 interrogating their data lakes with fancy                If the transition from paper to electronic
 dashboards, accurate audience metrics and            marked the initial disruptive force in TV
 extensive analytic capabilities, traditional         metadata delivery practices, the new “AI”-          TV metadata aggregators, provided a modern
 broadcasters and pay TV platforms are having         driven techniques for automating metadata           conduit for channels to deliver their schedules
 a tougher time of it. They face competition          extraction are set to be the second wave.           to the wide number of publications, later
 from the likes of Netflix, Facebook, Fortnite            Artificial Intelligence (AI) is the term        websites and EPGs, in an efficient manner.
 and everything else that vies for the attention of   we often use when we really mean Machine                What broadcasters needed at that time was
 consumers these days.                                Learning (ML) and a host of other technologies      someone who could sort out their TV schedule
     “The role of data for operators is really very   that are still at the early stages of development   (TV metadata) distribution problems so that
 important,” says Jacques-Edouard Guillemot,          and deployment. These new technologies are          consumers could discover their programs. This
 SVP at Nagra, speaking at IBC 2019, who set          driving a new wave of disruption in content         became necessary as TV was deregulated and
 out the issues succinctly. “They have built their    navigation and search, enabling metadata to be      trans-frontier satellite broadcasting began. At
 entire infrastructures and business processes        automatically extracted. ML enables computer        that time the delivery of this information was
 around data. Yet when we look at operators,          systems to learn based upon ongoing data that       done mainly by snail mail and fax.
 they have legacy systems that for some of            is provided. After a while the learning becomes     Programming and schedule data began to flow
 them are 30 years old. All departments should        more refined. AI, on the other hand is when         freely from broadcasters to aggregators. In
                                                      a computer appears to learn, think and solve        this way, TV metadata aggregators became the
                                                      problems on its own. Both generate metadata         necessary cog in the wheel to get linear TV
                                                      but also require metadata to work. Beyond           data to publishers of magazines and guides,
                                                      the AI/ML buzz, new metadata extraction             because of all the multiple formats (paper,
                                                      technologies also include computer vision,          faxes, spreadsheets, Word and text documents).
                                                      speech to text, automatic translation, etc,             From paper to electronic, there has hardly
                                                      and all are on-course to bring transformative       been any further innovation for almost 30
                                                      benefits to the TV business.                        years. Today, descriptive TV metadata is still
                                                          The need for accurate TV content metadata       acquired in multiple formats, aggregated and
                                                      to drive program discovery has been                 normalized. It is then delivered to anyone who
                                                      increasing as the number of channels and            needs to populate an EPG guide, including the
                                                      services has steadily grown. But audiences’         now/next Service Information feeds (DVB-SI
                                                      easy access to program information has              and PSIP in the US) which channel providers
                                                      actually decreased as we have gained more TV        were originally meant to generate on their own.
                                                      viewing options. As with the printed “grid”
                                                      formats that preceded them, digital Electronic      AI and Machine Learning: New Forces in
                                                      Program Guides (EPGs) introduced in the mid         TV Metadata Extraction
                                                      90s made it a bit harder to access program              We are now in the midst of a second
                                                      information, because you had to click into the      wave of disruption. A good example of this
                                                      listing to view the description.                    disruption can be seen at the annual workshop
                                                          Driving all these guides was the business-      for developers working on metadata and
                                                      to-business exchange of TV metadata                 artificial intelligence, hosted by the European
                                                      consisting of time, title and a program             Broadcasting Union (EBU), Europe’s
 Jean-François Crémer, Director, Clients              description. The first disruption in TV listings    representative body for public service media.
 Service & Operations, EMEA at TiVo, work-            distribution took place in the early 90s with the   The topic of media information management
 ing with the incoming TV schedules from
 European broadcasters at Infomedia S.A. in           advent of “electronic delivery” services. These     is part of the EBU’s strategic program on
 Luxembourg, c. 1992.                                 intermediaries, which came to be known as           production. It aims to help members enhance

16   OTT Executive Magazine
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